Air India and Indian Airlines Merger?

[boeingdream787]

Hey guys.Just heard today that the two major government carriers Air India and Indian Airlines are planning a mega merger.That too it is to be COMPLETED within the next 6 months.Both airlines have subsidiaries....Air india express and Alliance air.I believe this merger will form a single airline of more than 130 airplanes.Was just wondering,what would be the impact,if any to the other players in india.....Jet,Kingfisher,Deccan etc.Also,how successful can such a mega merger be.What with seniority issues,airline routes,fleet utilisation etc etc.Moreover i was quite sure that two mergers involving airlines meant wrapping up operations of ALL subsidiaries.What would happen then to AIE and Alliance.Just wondering.ANY and ALL comments on this issue would be welcome.Has anybody read any LATEST news articlis on this issue.Link please.How would it effect flying crews in both airlines and their subsidiaries.Thanks in advance.

[Hanslope]

This is not the first time such a merger has been mooted, but the addition of the 6 month timeline is a new thing and perhaps means it is more serious this time.
I think if AI and IC were able to merge and save costs by reducing staff and duplicated jobs etc. there is no doubt the new carrier would be a strong competitor to the likes of Jet, Kingfisher and so on.
However, it is a BIG if. Chances of them getting past the immensely powerful staff unions and managing the politically damaging job losses etc. are slim in my view.
Would be interested in hearing other thoughts too.

[MarkD]

they don't need a merger - they just need to be able to buy the planes they need when they need them and not the types/times that it suits the bureaucracy to be cosy with Airbus or Boeing. Even as a merged entity that problem probably will remain.

[akerosid]

It does indeed appear that they are serious this time and the PM and Transport Minister are anxious to get this through by the end of the year.

What amazes me is this: the Indian Airlines A32X deal took ages to go through the various hoops and that, as we know in India, takes a long time. It's strange that during all this process, no one took the opportunity to ask "what if they merge". Surely, this could have been considered. Now, AI will have 738s and IC, A320s - both very newly ordered.

Great for enthusiasts, but hardly good for economics and commonality!

Still, good luck to them.